Getting Paid
© Take Charge Today –August2013 – Getting Paid– Slide 2
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What are the two primary sources of
employment?
© Take Charge Today –August2013 – Getting Paid– Slide 3
Salary vs. Hourly
© Take Charge Today –August2013 – Getting Paid– Slide 4
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
© Take Charge Today –August2013 – Getting Paid– Slide 5
© Take Charge Today –August2013 – Getting Paid– Slide 6
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Payroll Card
© Take Charge Today –August2013 – Getting Paid– Slide 7
Payroll deductions
© Take Charge Today –August2013 – Getting Paid– Slide 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What are the five main types of taxes?
© Take Charge Today –August2013 – Getting Paid– Slide 9
Why are income and payroll taxes deducted from
wages?
Helps manage
tax liability
on an ongoing basis
(total tax bill)
Beginning
of year
End of
year –
total tax
liability
© Take Charge Today –August2013 – Getting Paid– Slide 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
© Take Charge Today –August2013 – Getting Paid– Slide 11
Federal Income Tax
Largest required deduction
© Take Charge Today –August2013 – Getting Paid– Slide 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
© Take Charge Today –August2013 – Getting Paid– Slide 13
© Take Charge Today –August2013 – Getting Paid– Slide 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Allowances
© Take Charge Today –August2013 – Getting Paid– Slide 15
State Income Tax
© Take Charge Today –August2013 – Getting Paid– Slide 16
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What is Social Security?
•
Income for:
o
Retirees
o
People with profound
disability
o
Children who have lost
a parent
o
A person with children
who has experienced
the death of a spouse
•
6.2%
•
Up to an annual
maximum
•
Paid by each worker
© Take Charge Today –August2013 – Getting Paid– Slide 17
What is Medicare?
•
Helps pay for health
care for individuals 65
and older
•
1.45%
•
No limit
•
Paid by each worker
© Take Charge Today –August2013 – Getting Paid– Slide 18
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
What are optional payroll deductions?
Employee will typically pay much less
than privately purchasing that same
© Take Charge Today –August2013 – Getting Paid– Slide 19
How Employers Further Support Employees
© Take Charge Today –August2013 – Getting Paid– Slide 20
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
© Take Charge Today –August2013 – Getting Paid– Slide 21
What is a pay stub?
Pay stub
- outlines the
deductions made to wages
Why is it important to
review your pay stub?
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
© Take Charge Today –August2013 – Getting Paid– Slide 22
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
Type
Beginning
balance
current
Beginning
balance YTD
Used
Current
Used
YTD
Ending Balance
Personal
10
15
0
5
10
© Take Charge Today –August2013 – Getting Paid– Slide 23
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
Type
Beginning
balance
current
Beginning
balance YTD
Used
Current
Used
YTD
Ending Balance
Personal
10
15
0
5
10
© Take Charge Today –August2013 – Getting Paid– Slide 24
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Pay Stub
•
Gross income
•
Net income
Current
Year-to-date (YTD)
Amount this pay
period
Amount from
January 1 to last
day of current pay
period
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
Type
Beginning
balance
current
Beginning
balance YTD
Used
Current
Used
YTD
Ending Balance
Personal
10
15
0
5
10
© Take Charge Today –August2013 – Getting Paid– Slide 25
Pay Stub
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
© Take Charge Today –August2013 – Getting Paid– Slide 26
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Pay Stub
What are examples of
deductions?
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
Type
Beginning
balance
current
Beginning
balance YTD
Used
Current
Used
YTD
Ending Balance
Personal
10
15
0
5
10
© Take Charge Today –August2013 – Getting Paid– Slide 27
Pay Stub
What contributions are
included?
Employee Information
Pay Date: 6/11/2013
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
© Take Charge Today –August2013 – Getting Paid– Slide 28
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
Pay Stub
Name
Identification
Number
Address
Pay Rate
Pay Period
Joe Beakens
00112233
293 Michael
Grove
$15.00
5/1 – 5/31/2013
Summary
Gross Income
Total Personal
Deductions
Net Income
Current
$2,400.00
$747.00
$1,653.00
YTD
$12,000.00
$3,735.00
$8,265.00
Earnings
Type
Rate
Hours
Current
YTD
Regular
$15.00
160
$2,400.00
$12,000.00
Overtime
0
0
0
0
Deductions
Type
Personal Deduction
Employer Contribution
Federal income tax
$249.40
0
State income tax
$100.00
0
Social Security and Medicare
$183.60
$183.60
Retirement plan
$144.00
$144.00
Health insurance
$100.00
$400.00
Workers’ compensation
0
$13.80
Unemployment insurance
0
$6.26
Employee Leave Balances
Type
Beginning
balance
current
Beginning
balance YTD
Used
Current
Used
YTD
Ending Balance
Personal
10
15
0
5
10
© Take Charge Today –August2013 – Getting Paid– Slide 29
Can an employer pay employees cash?
Ensure employer is deducting income and payroll taxes from wages paid in cash
© Take Charge Today –August2013 – Getting Paid– Slide 30
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona
